Seafarers UK Tax Relief

HM Revenue and Customs (HMRC) has announced that they intend to extend the Seafarers UK Tax Relief with Seafarers’ Earnings Deduction to European Economic Area (EEA)/European Union (EU) resident seafarers who have paid UK tax from 2011 – 12.

The Pre-Budget report notice 23 said that once qualifying conditions are met, the claim should be made upon the new form R34M (SED) and will apply for the tax year 2011 – 12 onwards.

Under certain circumstances, the Seafarers’ Earnings Deduction may be claimed by seafarers who are not resident in the UK or EEA/EU, but have however paid UK tax on earnings as a seafarer. These claims should also be made on the R34M form and not via a self-assessment tax return.

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On 15 May 2018, the EU reinstated State Aid Approval for the Enterprise Management Incentive (EMI) Scheme, which had lapsed on 6 April 2018. This means that EMI options granted to employees will once again receive a beneficial tax treatment.